Court Confirms Ziff Davis' Bankruptcy Plan

A U.S. Bankruptcy Court has OKed 1Up and EGM owner Ziff Davis' bankruptcy reorganization plans, the company said today, adding that it expects to emerge from Chapter 11 on July 1.

“The Court’s confirmation of our Plan is a major milestone for Ziff Davis as we look to emerge from Chapter 11 restructuring,” said Jason Young, Chief Executive Officer of Ziff Davis Media. “We are very proud of the progress we have made during our short time in Chapter 11 to become a healthier company. We remain grateful for the unwavering support of our customers, vendors and employees throughout this process and we look forward to continuing our work with all of our stakeholders after our emergence. After concluding our restructuring, we will be better positioned, with the financial strength to grow and capitalize on our strengths.”

The plan, in a nutshell, splits the $428 million in debt between new stock and a $57.5 million debt.

I'm happy to see that both 1Up and EGM survived the turmoil. Let's hope that they both recover as stronger entities than when ZD first filed.

I spent the first half of this week hanging out with the likes of Michael Pachter, Peter Moore, Mike Gallagher and Nintendo of America's recently appointed vice president of marketing, Cammie Dunaway at Ziff Davis' Electronic Gaming Summit.

It was the first time I met Dunaway and we ended up chatting quite a bit during a dinner on the last night, hosted at a nearby vineyard, held in a castle of all places.

Dunaway, it turns out, had just flown in from New York where she helped kick off the launch of the Wii Fit in Central Park.

"I'm sure Wii Fit is going to sell very well," I told her, "but I suspect it's going to be like every other piece of exercise equipment people buy for themselves: In a few weeks or a month it's going to have laundry piled on it or be back in its box."

Not so, Dunaway insisted.

Nintendo: Wii Gamers Are Hardcore Gamers

The average Wii gamer is a hardcore gamer, Nintendo of America's Cammie Dunaway told the Electronic Gaming Summit today.

Seventy-nine percent of Wii gamers are male, most older than 18 with an income of $50,000 or more and more than half game for five or more hours a week, Dunaway said.

While the people who buy Wii tend to be pretty typical for gaming, the other household members who play Wii aren't, she said.

About 45 percent of the other household members who play Wii are female, with 38 percent 25 or older. Sixty-five of these gamers play at least two hours a week, while only 32 percent play five or more a week.

"The real break-through, the real magic of the Wii console is that it brought new consumers into the game," she said. "We in the industry have a choice to make, do we want to appeal to the few or to the masses? Do we want to sell to more people or sell more and more and more to less people? Do we want to be inclusive or do we want to be expansive? At Nintendo we definitely believe in the power of the expanded audience.

"We hope everyone will join us in showing everyone just how much fun video games can be."

Nintendo: Wii Has Highest Software Sales for First 18 Months

More games were purchased in the first 18 months of the Wii's life than any other console's first year and a half, Nintendo said today.

About 50 million games were sold for the Wii in its first 18 months, compared to about 42 million games in the first 18 months of the Playstation 2's life. The Xbox 360 came in at 30 million or so, the Xbox at roughly 28 million and finally the Playstation 3 at about 20 million.

Speaking to a gathering at the Electronic Gaming Summit, Cammie Dunaway, executive video president of sales and marketing for Nintendo of America, Dunaway used the numbers to launch into a talk about Nintendo's strategy for expanding the market.

Dunaway also showed a chart plotting out the first 18 months of each console's life. According to the chart, about 9.5 million Wii were sold in the first 18 months, 8.5 million PS2, 5.4 million Xbox 360, 5.2 million Xbox and 4.2 Playstation 3.

"While we appreciate the impact the Playstation 2 had on sales and the industry, perhaps we are even more impactful," Dunaway said, adding that there wasn't a single month in the Wii's first year and a half when Nintendo could meet demand.

Update: I just clarified with Nintendo: Those software sales numbers only include boxed games sold at retail and not virtual console or Wii Sports.

EA Plans to Reup NFL License When it Expires

Electronic Arts plans to reup their licensing deal with the National Football League in 2013 when their current deal expires, EA Sports president Peter Moore told attendee's of Ziif Davis' annual Electronic Gaming Summit.

Moore was quick to point out that it wasn't Electronic Arts that asked for the exclusive deal, but rather the NFL which was seeking a single licensee. He said that EA feels that licensing remains an important part of adding realism to their sports titles and that he can't imagine a time when they wouldn't seek them.

Peter Moore Shows Off How Alpha Moms Will Play Wii's New Madden

Electronic Arts' ability to build simulation and authenticity into their sports titles isn't just their greatest strength, EA Sports president Peter Moore told attendees at the Electronic Gaming Summit yesterday, it's also their greatest weakness.

Specifically, the weakness that EA faces when trying to deliver the same experience to the flood of new gamers brought into the fold by Nintendo's casual-centric Wii.

Moore said after speaking with focus groups who called their Wii sports titles a "joke" or the outcome of "spoiling a good game", they realized their approach to the Wii had to change.

"We weren't delivering the experience," he said. "We have to make it a little more approachable to allow them to get in early and quickly.

"We can't port content down to the Wii, we need to start building for the Wii from the ground up, that's what we are doing this year."

Specifically, they are doing that with their new All-Play brand which will bring Tiger Woods, NCAA, FIFA, NBA and Madden all to the Wii in versions built specifically for the console. Instead of trying to describe how that will be different, Moore booted up a Wii debug unit to show off how the alpha version of All-Play Madden will look and feel.

Pachter: Console Price Drops This Holiday

Analyst Michael Pachter expects a $50 price drop will be hitting both the Playstation 3 and Xbox 360 this holiday, but that it will still be hard for the industry to match last year's extraordinary holiday sales.

Speaking at the Electronic Gaming Summit this afternoon, Pachter said that he expects an overall slowdown in video game sales over the next three years.

Pachter expects the industry to see 19 percent growth in the U.S. and 20 percent in Europe this year, with his predicted price drop this holiday. Next year, Pachter expects growth to dip to 16 and 18 percent, unless the consoles drop another $100, which would add another five percent to growth. In 2010 growth will slow to 10 percent and seven percent, unless consoles drop in price by $150, Pachter said.

By the year 2011 Pachter predicts that the industry will flatline unless a new console is introduced.

Wait. That means that game sales will flatten out after six years unless we get a new console. There goes Microsoft's hopes for a seven year console and Sony's plans for a ten year one.

Microsoft Still Working on Live Anywhere

During his talk at the Electronic Gaming Summit today, Microsoft's Jeff Bell briefly, very briefly, touched on the long-lost, quickly becoming mythical Live Anywhere pipedream that Microsoft first mentioned at E3 in 2006.

The concept, captured in blurry pics later that year, would allow gamers to access Live via a cellphone so they could check friend status, Achievements, all the data of Live, on the go.

Bell said not to give up hope. "Live anywhere is not abandoned, it's just not easy to do."

And then he never mentioned it again.

Xbox 360 Looking for the Twister of the 21st Century

Microsoft hasn't forgotten that despite their successes they are still the "challenger brand" in the video game industry, Jeff Bell, Microsoft's corporate vice president of global marketing for Interactive Entertainment Business, told members of the Electronic Gaming Summit today.

After walking the audience through his personal gaming history, which started with Pong in his early teens, Bell talked about gaming generations and how Microsoft works to extend their reach in the industry, reminding the audience that the Xbox is still the new guy in the console wars.

"We are the challenger brand in this category, this is our seventh year really," he said. "We're coming into our eighth holiday, from that stand point we are still the newbie."

Ziff Davis Wraps Up Restructuring, Cuts Debt

Back in March 1Up promised that all of that nasty business with parent company Ziff Davis' bankruptcy would soon be behind them and that they would be a stronger publication for it.

Today, speaking at the 11th Annual Electronic Gaming Summit, Ziff Davis Media CEO Jason Young told the gathered summit members that the restructuring process will be wrapped up in June. More importantly, he noted that their $400 million debt will be reduced to a paltry $57 million, leaving them with the cash flow to invest back in their products, which includes 1Up, EGM and GameVideos.

Sounds like Simon Cox, , Vice President of Content for the 1UP network, hit the nail on the head when he said they would be bigger, better, faster, stronger when they came out of the restructuring.

Stay tuned later today for reports on talks given to this small group by Microsoft's Jeff Bell;, analyst Michael Pachter; Tanya Giles, of MTV; and the always energetic Peter Moore.

Burnout Paradise To Introduce Motorcycles, Night, General Bad Assness

Criterion has just announced a major addition to Burnout Paradise. Planned for their "Davis" update this August, the download will include motorcycles (a first for Burnout) along with "their own game modes, challenges and even some new locations tailored to fit their unique performance and handing characteristics." From that statement we're assuming that cars and bikes will not race side-by-side, but you can take it as you will.

In addition, the Davis update will bring night time driving to the game—adding a bit of realism to freely racing around public streets without getting constantly arrested and frisked. Here's the full Criterion announcement:

Gerstmann Lands With Giant Bomb

The dust has finally settled for Jeff Gerstmann after the Gamespot controversy. He's actually starting a new site called Giant Bomb. Essentially a review-heavy video game blog, Gerstmann promises his tech crew is building a "robust, feature-filled website...which we'll use to talk about games. And energy drinks."

But Giant Bomb interface 1.0 isn't too shabby. Hit it up and check out the first video in the behind-the-scenes series "How To Build A Bomb." We snagged this still that looks like Luke Plunkett from 20 years in the future was wandering around in the background during Gerstmann's filming. Future Luke, if you can read this, know that you are in our thoughts and prayers.

Welcome to Giant Bomb (dot com) [Giant Bomb]

1UP VP Explains The Positives Of Ziff Davis Bankruptcy

Ziff Davis Files For Bankruptcy

The publisher of EGM, Games for Windows: The Official Magazine and 1UP.com has filed for Chapter 11 bankruptcy in a Manhattan court today, in an attempt to restructure its sizable, long-term debt. Ziff Davis has, according to Bloomberg's report, filed papers indicating it has somewhere between $500 million and $1 billion in debt, with previous reports pegging the debt at around $400 million.

The company has tried to negotiate its substantial debt out of the courts before, following a missed interest payment last summer. Over the past four years, the company had shuttered some of its publications, including the Official PlayStation Magazine and GMR, but continues to publish print properties like eWeek and PC Magazine as well as nearly twenty technology and entertainment web sites.

While we don't know much about the financial health of its video gaming properties, we have heard that the 1UP Yours podcast will be scaled back to a lean three hours in an effort to cut costs. A temporary setback, we hope.

Ziff Davis Media Files for Bankruptcy to Cut Debt [Bloomberg]

GameSpot Loses One More Editor

Ryan Davis, an associate editor, experienced reviewer and nearly 8-year GameSpot veteran, has become the latest to quit in the wake of former editorial director Jeff Gerstmann's termination. GameDaily.biz reports today that it has confirmed with new GameSpot editor in chief Ricardo Torres that Davis will follow Frank Provo and Alex Navarro as the latest casualty to the site's editorial staff. News of the most recent resignation comes two months to the day that we warned of a mass walkout at the CNet Networks owned site.

Gerstmann and Davis appeared to have been close cohorts, with the pair performing as the musical outfit Suburban All-Stars. Davis wrote in his GameSpot blog within days of Gerstmann's firing that "I would not be in the video game business at all were it not for Jeff Gerstmann," adding that the controversial termination "absolutely breaks my heart" and signaled "the end of an era for both GameSpot and myself."

The GameSpot Exodus Continues as Ryan Davis Leaves [GameDaily.biz]

Ziff Sets Us Straight On Stolen Street Fighter IV Pics

Earlier today, we posted about the plight of "tiny Brazilian blog" Blogeek, who, as you may remember, posted a pair of screen shots of Street Fighter IV yesterday. Amazingly, the site scooped 1UP to its own exclusive, claiming it had received the screens and details on the Capcom fighter from an "anonymous source." The site's owner, Douglas Pereira, wrote us this morning, crying out for help. "Ziff Davis is going after me. They're chasing me," he lamented. It was very heart-wrenching.

Sounds like EGM and 1UP were quite justified in their legal "picking on" of Pereira and Blogeek. He's an EGM Brazil freelancer and has now admitted to swiping the pics from Ziff-Davis' own media servers. EGM editor-in-chief Dan Hsu, who says ZD has the IP logs of the transgression to back it up, explains.

"The content you posted in the site blogeek is property of Ziff Davis, given from Capcom only to Ziff Davis and EGM issues, with embargo for the publications. Your publication of this subject is theft of intellectual property and should have immediate legal consequences. Ziff Davis and Futuro want you to cut off the content form your site immediately."